Economic recession has affected a lot of people and few of them who are most effected by this recession are home owners who are suffering from higher interest rates and change in inflation rates. Government is trying hard to ease the effect of economic recession from those people who are home owners but at one point in time, even they are helpless. Those people who are in job even after heavy job cuts, they are finding it very difficult in mortgage repayment because of no increase in salary.
Those home owners can still smile a bit who have a fixed and comparatively low rate mortgage as mortgage repayment will remain the same even after increase in interest rates. Those home owners who have flexible interest rate on mortgage can lead them to high debt because of increase in interest rates and mortgage repayments and no increase in salaries.
Precautions need to be taken at the time of buying home because we cannot predict anything about the future economy. In recession time, another good idea is to take out some cover on your mortgage repayment. For a monthly repayment, you can protect yourself for a period of time against loss in job or failing in health which allows for the mortgage on your home to be paid after getting a new job or after recovering from any disease. I’ll also suggest you to go for fixed rate mortgage plan rather than flexible interest rate. You can also change your interest plan from flexible rate to fixed rate mortgage plan.